Select Page
  

Sherlock and Holmes have agreed to form a partnership. Both of them already had proprietorships, and those assets were going to be combined to form the partnership. The fair value of Sherlock and Holmes’ assets and liabilities are listed below.S Contribution H ContributionCash 5,000 20,000Inventor 5,000 50,000Land 60,000Building30,000Equipment 10,000 20,000Liabilities assume -10,000Net Assets contributed 100,000 90,000Assuming that Sherlock and Holmes have agreed to have equal equity balances, prepare the journal entry to record the new partnership using bonus and goodwill method